The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1887-03-30
THE HIGHEST COURT.
The Personal Liability Of the Stockholders Of
Dsfunet National Bank.
The Long-Standing McDOugal Case-OR
Interest to Commercial Travellers
"A Court Order.

WASHINGTON, March 25 "A decision was
rendered by the United States Supreme
Court to-day IN case No. Z, original ex
parte, George NJ. Balm, Jr., petitioner.
This court decided that inasmuch as the
indictment upon which Balm was tried in
the court below was changed after it came
from the Grand Jury it was not the in-
dictment of the Grand Jury within the
meaning of the Constitution, and the court
had not the right to try and sentence him
upon it. The prisoner IS therefore en-
titled to a writ Of habeas corpus, and il is
granted. Opinion by Justice Miller.
A decision was also rendered in the in
solvent bank case of Alonzo Richmond,
Charles Comstock and others against Agnes
F. Irons and Andrew Foskett, executor
and executrix of James Irons, deceased,
and Others. Appesl from the Unite"
Circuit Court for the Northern Dlstrict VI
Illinois. This was suit to enforce the
personal liability of the stockholders for
the debts of the insolvent Manufacturers
National Bank Of Chicago. A Master,
appointed by the court below to
ascertain the amounts of the debts
and assets of the bank, reported on the
25th day of May, 1856, that the indebted
ness of the bank at that time was 1916, 733;
that 500 346 should be added to that sum
for the expenses of the receivership, max
ing total of S4l6,079. and that the neces-
sary assessment upon the stockholders to
pay said indebtedness was S3.2 per cent on
the capital stock OF 100000 Many excep-
tons were made to the Masters report,
but they were all overruled, and a decree
was entered against each stockholder sew
orally for the amount c0mpgted to be due
from him according to the amount of his
stock. From this decree Richmond, Com
stock and others appealed. This court
holds:
l. That the. action of the Circuit
Court in permitting amendment to the
original plesdlIgs is justified by the rules
on that subject as stated by this court in
the case of Neale VS.. Neale % Wallace j.
and IN The Tremolo patent (S3 Wallace
51Si, etc.
. That the statute of limitations,
ever if appliable as bar to this proceed
ing, ceased to run against the creditors of
the bank entitled to the benefit of the de-
cree from the time when the amended bill
was fled in October, 1876. 1t had not then
taken eject.
3 That the obligation of a deceased
stockholder survives as against his per-
sonal representatives.
4. That Comstock is liable on stock sold
by him in good faith, but not transferred
on the banks books, as we'll as on stock
sold with the knowledge Of the banks in
solYency.
5. That the stockholders are by law ex-
onCrated from the obligation to contribute
to the payment of all Claims in class ID,
amounting in the aggregate TO S1S5,000.
8. That the creditors are entitled to in
terest on the debts of the bank as against
the stockholders; and,
Z. That the stockholders are not
bound to contribute, as a debt due from
the bank or themselves, to g fund for the
payment OF the expenses Of the receiver
ship. The decree of the Circuit Court, in
50 fer ss ii is inconsistent with the forego-
ing decision, is reversed and the cause re-
manded with directions to proceed therein
as justice and equity may require in con-
forming with this decision. Opinion by
Justice Mathews.
a decision was also rendered by the
court to-day in the Virginia coupon tax
cs sc Of William l.. Royal against the State
Of Virginia. This is an appeal from a
judgment pronounced against Royal by
the Supreme Court of Appeals of Virginia
on the 25th of February last in a case in
which he was prosecuted by the State for
pra cticing his profession as a lawyer with
out license after having rendered the said
States coupons in payment Of his license
tax. This court holds that the present
case can not be distinguished in principle
from that of Royal rs. Virginia (ll6 U. S.,
572l and on that authority the Judgment
Of the Supreme Court of Appeals of Nir-
ginia is reversed and the cause remanded
with directions to allow the writ of error
which was prayed for. Opinion by Chief
Justice Waite.
decision was also rendered in the long
standing case Of the United States against
John Paul Jones, administrator OF George
McDougal. Appeal from the Court of
Claims. ! his SUIT had its origin in a con-
tract entered into April ), 1852, between
p. N. Wozencraft, United States Indian
Agent in California, and George Nc
Dougsll to supply certain Indians with
$50, Geo pounds of beef. The beef was duly
furnished, and Indian Agent WozeDcraft
gave the contractor, McDoUgall, drafts on
the Secretary Of the Interior amounting in
the aggreg gate to SSl, 250. The Interior De-
psrtment regarded the contract as unau-
thorized and illegal, and refused to honor
the drafts. On December l, 1884, the
Secretary referred the case to the
Court of Claims under the provisions of
section 1,0S3 of the Revised Statutes and
the court gave Judgment in favor of the
appellee for SSl, $50, disallowlng the sum
of $40 500 claimed, in addition to the judg-
ment under the terms of the contract.
From this Judgment both parties appealed,
the Government insisting that the claimant
ought not to recover anything while the
latter maintained that he ought to have
had Judgment for SIS, 500 more. This court
which this claim is based, imposed no legal
obligation upon the United States, and that
the judgment of the Court of Claims in
favor. of McDougall's administrator was
erroneous. The judgment is therefore re-
versed, and the case remsnded with direc-
tions TO dismiss the petition. Opinion by
Justice Hsrlan.
a. decision was also rendered in the ccu-
pom tax case of H. A. Carper, jsilor of Pu-
laski County, Virginia, against Richard l..
Fitzgerald. Appeal from the United States
Circuit Court for the Eastern Division OF
Virginia. Fitzgerald, the appellee in this
case is travelling salesman for the firm of
Austin Fields & Co., of Philadelphia. He
was arrested in Pulaski County, Virginia,
for doing business without a license
after he bad made an offer oE
tax receivable coupons in payment
of such license. Upon writ OF
babeas corpus he was discharged from Gus.
tody by Judge Bond, of the United States
Circuit Court for the Eastern District Of
Virginia, sitting as Circuit Judge in cham,
bers at Baltimore. The State of Virginia,
through Its iailor, appealed from Judge
Bonds decision to this court. This court
holds that the act OF March 3, 1855, allows
appeals in habeas corpus cases only from
the decision of a Circuit Court, and that
the decision of a Circuit Judge sitting in<